hk,
On balance I think the news seems good. PAIR was able to improve margins, again demonstrating their ability to maximize the profitability of their sales. At the same time, they have maintained a strong commitment to R&D and engineering projects that will have their fruition down the road.
While the next quarter isn't going to set the world on fire, PAIR has no Asian exposure. This eliminates a downside vulnerability that many companies have. Meanwhile, next quarter will see a number of announcements that I expect will be very positive for PAIR. While other companies, like ADCT, have been undergoing meltdown, PAIR seems comparatively strong going into the reduced telco spending environment everyone has been worrying about.
I think PAIR has already oversold and pretty much discounted the bad news. The forecast from here, including an incredible ADSL potential, looks much better than it did last spring, when the analysts were trashing PAIR. With the stock price at about the same level, I think the upside seems bigger and more likely than the downside. I seriously doubt we will go much lower if we go any lower at all.
Baird |
